chit fund
noun
(In South Asia) an institution which accepts savings at interest and lends money for house and other purchases.It is perhaps this aspect that tempts lay individuals join a chit fund in a hurry only to lament later....
- However, these days, that notion has been changed by chit fund and gold deposit schemes started by enterprising jewellers.
- The Reserve Bank of India has directed all nidi companies, chit funds and non-banking financial companies holding public deposits to submit annual statutory returns on deposits before 30 September.
Origin
Chit from chit1.